Aequs IPO Fully Subscribed on Day One Raising ₹922 Crore

Aequs IPO Fully Subscribed on Day 1: Strong Demand for Indian Aerospace Supplier

The initial public offering (IPO) of Aequs Limited, a key Indian supplier of precision aerospace components, was fully subscribed within hours of opening on Wednesday, December 3, 2025. According to reporting by Reuters, the swift uptake underscores robust investor appetite for India’s growing manufacturing sector, particularly as global supply chains look to diversify beyond China.

Market data indicates that by early afternoon on the first day of bidding, the issue was subscribed approximately 1.5 to 1.7 times overall. Retail investors drove much of this early momentum, oversubscribing their allotted quota by nearly seven times. The strong opening signals high confidence in the company’s role within the global aerospace ecosystem, where it serves major clients including Airbus and Boeing.

IPO Structure and Market Reaction

The Aequs IPO aims to raise ₹921.81 Crore (approximately $110 million) through a combination of a fresh issue and an Offer for Sale (OFS) by existing shareholders. The price band has been set at ₹118–₹124 per share, valuing the company at roughly ₹8,300 Crore at the upper end.

Subscription Breakdown

While Qualified Institutional Buyers (QIBs) typically place their bids on the final day of the issue, early data highlights significant interest from other categories:

• Retail Investors: Heavily oversubscribed at approximately 6-7 times the quota.
• Non-Institutional Investors (NII): Subscribed roughly 1.3-1.6 times.
• Grey Market Premium (GMP): Trading suggests a premium of roughly 37-38% over the issue price, indicating expectations of a strong listing debut.

Use of Proceeds

A significant portion of the funds raised, approximately ₹433 Crore, is earmarked for debt repayment. Financial analysts note that this move is critical for the company, which has reported net losses in recent fiscal years due to high depreciation and interest costs associated with heavy capital expenditure. The remaining funds are allocated for new machinery and general corporate purposes.

Company Profile and Industry Position

Aequs Limited operates a vertically integrated manufacturing model, anchored by the Belagavi Aerospace Cluster (BAC), India’s first notified precision engineering Special Economic Zone (SEZ). While the company has diversified into consumer goods to offset the cyclical nature of aviation, aerospace remains its core business, accounting for approximately 88% of its revenue.

The company manufactures over 5,000 distinct parts, ranging from engine systems to landing gear components. Its client list features top-tier global OEMs, including Safran, Collins Aerospace, and Spirit AeroSystems.

“Global aerospace firms are increasingly turning to India to ease supply-chain woes… India is the best solution to the supply chain challenges.”
— Huw Morgan, Senior VP at Rolls-Royce (via industry reports)

AirPro News Analysis: The “China+1” Tailwinds

The rapid subscription of the Aequs IPO reflects a broader structural shift in the global aerospace industry. As Western manufacturers implement “China+1” strategies to de-risk their supply chains, Indian suppliers like Aequs are becoming primary beneficiaries. The company’s established relationships and certifications, which often take years to secure, provide a significant “moat” against new competitors.

However, investors should note the financial nuances. While Aequs is EBITDA positive, it is currently loss-making at the net level. The success of this investment thesis largely depends on the company’s ability to convert the IPO proceeds into debt reduction, thereby improving its bottom line. Furthermore, while the “Make in India” initiative provides a supportive backdrop, the specific lack of a Production Linked Incentive (PLI) scheme for general aerospace components means Aequs must rely on organic demand rather than direct government subsidies for this segment.

Analyst Perspectives

Market analysts have largely recommended subscribing to the issue, citing the high entry barriers in the aerospace sector and the company’s long-standing client relationships. However, risks remain regarding client concentration. The top 10 customers account for a vast majority of revenue, meaning the loss of a single key contract could have material impacts on financial performance.

“Aequs offers visibility to profitability within 12–24 months… it is a pragmatic pick for investors who want a balance of upside and visibility in a high-entry-barrier industry.”
— Abhinav Tiwari, Analyst at Bonanza Portfolio

Frequently Asked Questions

When will Aequs list on the stock exchanges?

The shares are expected to list on the BSE and NSE on or around December 10, 2025.

Is Aequs profitable?

Aequs is currently EBITDA positive (operating profit) but has reported net losses recently due to high interest and depreciation costs. The IPO proceeds are intended to pay down debt and potentially push the company toward net profitability.

What is the primary business of Aequs?

Aequs is primarily a precision engineering company focused on aerospace components, which make up about 88% of its revenue. It also manufactures consumer goods like toys and cookware.

Sources

• Reuters